A trader may sell stock in trade after he has ceased trading or has even sold his business. The question then arises as to whether any resulting profits are a trading receipt. The question is ultimately one to be decided by appeal commissioners as one of fact. In making this decision they consider various factors such as:

Was the sale in the form of normal business sales?

Was the whole of the trading stock sold or was it sold in lots over a period of time through multiple transactions?

Did the vendor make it clear before the sale that he had retired from business (by public advertisement, for example)?

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